Roman Sterlingov, the founder of the darknet’s oldest cryptocurrency mixer “Bitcoin Fog” has been sentenced to 12.5 years in prison as part of the United States government's broader crackdown on crypto mixers.

It falls short of prosecutors’ earlier petitions for a 20- to 30-year sentence for Sterlingov following his March conviction by a jury on charges of money laundering, conspiracy to launder money, operating an unlicensed money-transmitting business, and transmitting money without a license.

Bitcoin Fog was a ‘go-to’ service for criminals, says DOJ

The United States Department of Justice (DOJ) declared in a Nov. 8 statement that throughout the “decade-long operation, Bitcoin Fog gained notoriety as a go-to money laundering service for criminals.”

The DOJ further claimed that Bitcoin Fog became a place for criminals to “hide their illicit proceeds” from law enforcement “and processed transactions involving over 1.2 million Bitcoin, valued at approximately $400 million at the time the transactions occurred.”

Sterlingov must pay a “forfeiture money judgment” totaling $395,563,025.39. He is also required to forfeit seized crypto and funds worth approximately $1.76 million.

Sterlingov had argued throughout the trial that he was only a user of the service, and not its operator.

Crime commentator L0la L33tz opined in a Nov. 8 X post that “this entire case is a grave miscarriage of justice, and another stepping stone in the US Government’s war on financial privacy.”

US government continues to crackdown on crypto mixers

“The government is now seizing the little Bitcoin he has left, while the Billions of Dollars he allegedly made operating Bitcoin Fog continue to remain unaccounted for,” they further added.

Meanwhile, Mario Nawfal’s popular crypto show Roundtable posted , “This ain’t just a slap on the wrist - it’s a straight-up message to mixers: play shady, pay heavy.”

Related: Can crypto mixers adapt to survive US authority prosecution?

It comes amid the recent US government cracking down on crypto mixer founders.

On Nov. 1, Cointelegraph reported that Tornado Cash co-founder and developer Roman Storm won’t stand trial for money laundering and sanctions violation charges until April 2025.

In 2023, prosecutors charged Storm and Tornado co-founder Roman Semenov with conspiracy to commit money laundering, conspiracy to commit sanctions violations and conspiracy to operate an unlicensed money-transmitting business.

Meanwhile, in April, Keonne Rodriguez, one of two individuals associated with crypto mixer Samourai Wallet who the DOJ charged with money laundering , pleaded not guilty and was released on bail.

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